Thunderwood Resources Inc. and Consolidated Abitibi Resources - Diamond Drilling Program Commences on the Morgan Lake Zinc Deposit.

TORONTO--(BUSINESS WIRE)--Jan. 20, 1997--Thunderwood Resource (TSE THS.) Consolidated Abitibi (ME CAQ.) Thunderwood Resources Inc. and Consolidated Abitibi Resources Ltd. announce that a $446,000 exploration program for 1997 consisting of 2,200 meters of diamond drilling in 8 holes, downhole Pulse EM surveys, geological mapping and lithogeochemical sampling has commenced on the 2,545 acre Bruce Morgan property which is located in the Snow Lake Volcanic Belt approximately 18 kilometers southwest of Snow Lake, Manitoba.

Geophysical surveys and diamond drilling conducted on Morgan Lake by Granges Inc. in 1984 led to the discovery of two mineralized, hydrothermal alteration zones which occur predominantly within felsic volcanics. The upper alteration zone, which is characterized by sericite with lesser biotite and staurolite, hosts the Morgan Lake, volcanogenic, massive sulphide deposit which contains approximately 200,000 tonnes grading 8.0 percent Zn. The lower alteration zone, which is characterized by abundant chlorite with lesser garnet, sericite and talc, is capped by a 1 meter thick cherty, siliceous, exhalite horizon that contains 15-25 percent pyrrhotite-pyrite seams and minor base metals. This exhalite horizon is interpreted to represent a time-stratigraphic break along which a massive sulphide deposit could have been deposited.

The Morgan Lake massive sulphides form an elongate body approximately 60 meters long and 500 meters deep that has been truncated on the north by a later granodioritic intrusion. The most significant assay results to date include 16.5 percent Zn over a core length of 9.0 meters; 15.9 percent Zn over 12.3 meters; 15.0 percent Zn over 5.0 meters; 10.7 percent Zn over 6.9 meters; 10.6 percent Zn over 11.6 meters; 8.0 percent Zn over 4.7 meters; 8.7 percent Zn over 4.6 meters; 7.0 percent Zn over 12.6 meters and 5.6 percent Zn over 7.2 meters, all in separate holes.

The main purpose of the current drill program is to expand the geological reserves in the Morgan Lake deposit by drilling on the north side of the granodiorite intrusion where previously untested TEM and HLEM geophysical anomalies may be indicating an extension of the massive sulphides and by drilling south of the known deposit where it is interpreted that previous holes may not have been drilled far enough to have intersected the massive sulphide bearing horizon. Additional holes will further evaluate the chlorite-rich, lower alteration zone and associated exhalite horizon and other untested TEM anomalies in the vicinity of the known massive sulphides. After spring break-up, geological mapping and lithogeochemical sampling programs will be undertaken south of Morgan Lake in order to identify new zones of hydrothermal alteration and to evaluate the significance of HLEM anomalies known to occur along the favourable stratigraphic horizon.

The Morgan Lake deposit has many characteristics similar to several other volcanogenic massive sulphide deposits previously discovered in the Snow Lake Volcanic Belt such as Chisel Lake (7,500,000 tonnes grading 0.5 percent Cu, 10.9 percent Zn and 4.0 g/t Au) and Stall Lake (6,500,000 tonnes grading 4.4 percent Cu and 0.5 percent Zn) and the possibility exists of discovering a similar base metal deposit on the Bruce Morgan property.

The Bruce Morgan property is owned 100 percent by Aur Resources Inc. with each of Thunderwood and Abitibi earning a 30 percent interest in the property.

CONTACT: Thunderwood Resources Inc.

Mr. John B. Heslop, 416/362-8730

or

Consolidated Abitibi Resources Ltd.

Dr. James W. Gill, 416/362-4699